Stocks to Watch - Biofuel Energy (NASDAQ: BIOF)

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Why is hindsight always so much clearer than foresight? In 2009 I sold off some penny stocks that just weren’t going anywhere and I needed cash. One of these stocks was BioFuel Energy (NASDAQ: BIOF ). I was into making a quick profit and this stock just wasn’t doing it for me. Wish I hadn’t ran across BIOF again and seen how the price has jumped; now I am sick.  In one year Biofuel Energy is up 654.69%, which still leaves the stock in the under $10 category.

I started checking out the historical prices to see what happened to this ethanol stock and was surprised to see that on September 18, 2012 the stock closed at 10.35. Looking into this closer I see that Greenlight Capital increased its stake in BIOF to 36.2% earlier that month lighting a fire under the stock causing the share price to jump from a low of $3 to nearly $11 per share in less than two weeks. I will have to say that I would have been on the selling bandwagon if I had still owned shares of BIOF at this time with quite a profit under my belt.

I had a feeling about this stock when I purchased it but didn’t have the nerve to hang onto it. One day I will learn, sometimes you have to hang onto a stock and ride it out for awhile to get the good out of it. I am going to put Biofuel Energy on my watch list of prospective stocks to invest in for 2013. I just want to see if America is ready for “clean energy” to expand or if this is just a passing fad. If there isn’t a demand for clean fuels like ethanol it doesn’t matter how many benefits exist for a clean energy economy.

Biofuel Energy Corporation is headquartered in Denver, Colorado where the company owns and operates two of the largest ethanol facilities in the US. 230 million gallons of fuel grade ethanol and 720,000 tons of distillers grain are produced at these two facilities in a year.

 

 


Denise Michael does not currenlty own any shares in Biofuel Energy or any other company mentioned in this entry.

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